Home Business Malawi: Minister Kambala Says Malawi Govt to Terminate Contracts of Idle Independent Power Producers

Malawi: Minister Kambala Says Malawi Govt to Terminate Contracts of Idle Independent Power Producers

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Minister of Energy Newton Kambala says the government is going ahead with its decision to terminate contracts of Independent Power Producers (IPP)s whose works have stalled for invalid reasons.

Government awarded 11 IPPs contracts to generate electricity in that would later be tapped to the national grid.

But apart from the controversial Aggreko diesel generators, only JCM and Cedar Energy Limited are making progress in rolling out power generation facilities in Salima and Mulanje respectively.

The idle IPPs include H.E. Power, Phanes Energy Renewables Nkhotakota Limited, Quantel Renewable Energy Ltd, Droege Mzimba Wind Farm Limited and Droege Monkey Bay Solar Farm Limited.

Kambala the government will now have to terminate the contracts of these non-performing IPPs as they have failed to honor their contractual agreements

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